Nomura Instinet analyst Romit Shah upgraded Intel (INTC) to Buy from Neutral with an unchanged price target of $50. The chipmaker closed Friday down 2%, or 97c, to $44.00.
The analyst, who admits he isn’t sure if this is “just a tactical call for the remainder of 2018 or an idea that’s longer lasting,” believes Intel is a buy at current share levels. He says Intel is likely the only company in his semiconductor coverage universe that he sees raising estimates in October or November. Intel will remain supply constrained until the ramp of 10nm, which sets the company up for “at least” seasonal revenue growth and stronger gross margins through Q2 of 2019, Shah tells investors in a research note.
He believes Intel’s focus on production of Xeon and core processors will be positive for earnings and gross margins.
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